Student bank accounts also tend to offer interest-free overdrafts which can be handy during your first term at university.
Here, we take a closer at the range of incentives on offer and what to watch out for in the small print.
What do student bank accounts offer?
We’ve rounded up the current perks available on student bank accounts. The table is arranged by Which? customer score.
Which account offers the best interest-free overdraft?
All the student accounts we looked at offer an interest-free overdraft, but the limits varied depending on the provider and the duration of the course.
Nationwide, NatWest, RBS and HSBC are willing to offer the most generous limits by the third year of your course.
Also while a student overdraft is interest-free for the duration of your course, the loan will start to attract interest, usually two years after you graduate. So you'll need a plan on how to pay it back, ideally before the interest kicks in.
Find out moreShould you get a student credit card?
Find out more:What are the best student bank account offers?
NatWest and RBS offer the most valuable perks according to our analysis. They both offer a £100 incentive for signing up plus a four-year Tastecard membership (worth £34.99 a year) which works out as a saving of £139.60.
Tastecard membership offers 2-for-1 deals at participating restaurants, up to 50% off pizza delivery, and money off at the cinema. However, if you don't go for either of these accounts you can still get a 60-day free Tasecard trial or save by getting a Totum card (£24.99 for a three-year membership), which offers discounts on shopping and comes with a free Tastecard.
Most providers are offering £100 cash this year including Natwest, Bank of Scotland, Halifax, Royal Bank of Scotland, Nationwide, Lloyds and HSBC. This perk offers the most flexibility and could be used to help you make even more savings. For example, you could use it to purchase a three-year railcard or a Tastecard.
Santander and Barclays offer perks that amount to a similar value as the £100 cash incentive other providers are offering.
Santander is offering a 16-25 Railcard for four years. The card usually costs £30 for a year, or £70 for three years, and can save you a third on rail travel. However, if you don't like the sound of the account you could save on getting a railcard by using your Tesco Clubcard points.
Barclays is offering 12-month access to Perlego, a digital online library that offers academic textbooks, and non-fiction e-books. It could save you £96 a year compared to getting the subscription yourself and might come in handy when the books you need for your course are checked out of your local or university library.
Find out more:What to watch out for when choosing an account
Most banks require you to spend or deposit a certain amount to be eligible for the perks and overdraft on offer.
Lloyds Bank, Halifax and Bank of Scotland require you to deposit at least £500 by 31 October to receive the £100 into your account by the end of November.
Nationwide requires you to pay in at least £500 by 15 December and your £100 will be paid within 14 days.
HSBC requires you to use your debit card five days within 30 days of opening the account, and you’ll be paid the £100 within 30 days.
NatWest and Royal Bank of Scotland only require you to open the account and the £100 will be paid within 10 working days.
Find out more:undefinedsource https://www.which.co.uk/news/article/which-student-bank-account-offers-the-best-perks-in-2023-apjdD4z5PLCZ